LA will keep adding new housing but prices will continue to rise: report

Multi-family construction expected to account for the increase in next 2 years

Los Angeles /
Feb.February 22, 2018 11:00 AM
Los Angeles (Credit: Pixabay, Pexels)

Los Angeles can expect slightly more new housing construction in the future, but residents should also expect higher prices.

The number of residential permits issued in Los Angeles County is expected to grow to 23,061 this year, up from 22,010 last year. That’s according to a new economic forecast from the Los Angeles County Economic Development Corporation. Next year should see another slight uptick in home construction to 23,143.

But the 4.7 percent expected increase in new L.A. County homes from last year to this year is still below the forecasted 5.5 percent increase in home values. Median home prices are expected to clock in at $592,094 in 2018, up from $560,858 last year. In 2019, the median home price is forecasted to rise to $624,901.

Single-family permits continued their declines in 2017, falling to just 25 percent of overall new home construction. Multi-family construction is expected continue to dominate in 2018 and 2019, taking advantage of the high demand for new housing countywide.

Nationwide, new housing construction will follow a similar pattern. The number of residential permits issued is only expected to increase nominally, with most of that stemming from apartment complexes and condominiums.

Employment in the county clocked in a 4.6 percent in 2017, the lowest unemployment rate since 2000. It’s expected to drop down in the next few years to 4.3 percent and 4.1 percent, respectively.

Personal income is also rising, the study found. Real per capita income is expected to rise to $52,080 in 2019, up from $50,650 in 2017.


Related Articles

arrow_forward_ios
The State Building and Construction Trades Council president Robbie Hunter (CA Building Trades, iStock)
State could require union labor on all affordable housing projects
State could require union labor on all affordable housing projects
A rendering of La Veranda (Abode Communities)
Affordable projects in Boyle Heights and Winnetka get LA city bond financing
Affordable projects in Boyle Heights and Winnetka get LA city bond financing
Residences at Westgate, The Hudson and Waterford co-founder John Drachman (Waterford Property Company, the CSCDA)
Waterford Property pays $335M for 2 Pasadena rental complexes
Waterford Property pays $335M for 2 Pasadena rental complexes
Superintendent Austin Beutner with Normont Elementary School (LAUSD)
LA Unified School District explores affordable housing development for employees
LA Unified School District explores affordable housing development for employees
(iStock)
LA County is short 500K affordable rental homes
LA County is short 500K affordable rental homes
(Azure Development, Weingart Center)
Weingart Center’s latest affordable complex snags bond funding
Weingart Center’s latest affordable complex snags bond funding
Google CEO Sundar Pichai and renderings of the project (Getty, Google)
Google gets go-ahead to build mega-campus
Google gets go-ahead to build mega-campus
California Governor Gavin Newsom. (Getty)
California to speed up environmental reviews for resi projects
California to speed up environmental reviews for resi projects
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...